TUI Group expects strong travel summer 2022

CURRENTLY, ALREADY 85 PER CENT OF THE BOOKING LEVEL OF SUMMER 2019 ACHIEVED – RETURN TO SIGNIFICANTLY POSITIVE EBIT IN THE CURRENT FINANCIAL YEAR POSSIBLE.

TUI expects a strong travel summer in 2022, with all indicators pointing in this direction. A significantly improved second financial quarter and a strong booking and business performance show that the tourism group is on the right path and is finding its way back to its former strength. At 1.9 million, the number of customers travelling with TUI in the period under review increased almost tenfold year on year. Turnover was around nine times higher and the usual seasonal loss was almost halved compared with the same period last year. Fritz Joussen, CEO of TUI Group: “The strong Easter business was already the first important indicator. The high demand for travel and the good business performance now confirm our forecasts. 2022 will be a good financial year with a strong travel summer. In terms of capacity utilisation, we are almost reaching the pre-Corona level of 2019. After two years of crisis, things are clearly progressing and we expect to become profitable again in the current financial year with a significantly positive underlying EBIT. This is the basis for new growth.”

  • Free cash flow at 1.24 billion euros due to strong operational ramp-up
  • Liquidity increased to 3.8 billion eurps even after the return of around 700 million euros in credit lines
  • Net debt decreases to 3.9 billion euros
  • Returning of government credit lines to be continued soon
  • New bookings in the last six weeks across all markets above the level for summer 2019
  • Industry-typically weaker winter quarter (Q2 2022) was significatöy better than the previous year
  • 1.9 million guests travelled with TUI in the reporting period – almost ten times as many as in the same period last year (Q2 2021: 0.2 million)
  • Turnover of 2.13 billion euros in Q2 2022 – nine times higher than in the same period last year (Q2 2021: 248 million euros)
  • Q2 Underlying EBIT loss of 330 million euros, almost halving the prior Q2 of 633 million euros
  • TUI Hotels & Resorts delivered a third successive quarter of positive earnings since the start of the pandemic
  • TUI CEO Fritz Joussen: “The high demand for travel and the very good business performance confirms our forecasts. 2022 will be a good financial year. Capacity almost reaches the pre-Corona level of 2019. After two years of crisis, we expect TUI to become profitable again in the current financial year with a significantly positive underlying EBIT. This is the basis for new growth.”
  • Free cash flow at 1.24 billion euros due to strong operational ramp-up
  • Liquidity increased to 3.8 billion eurps even after the return of around 700 million euros in credit lines
  • Net debt decreases to 3.9 billion euros
  • Returning of government credit lines to be continued soon
  • New bookings in the last six weeks across all markets above the level for summer 2019
  • Industry-typically weaker winter quarter (Q2 2022) was significatöy better than the previous year
  • 1.9 million guests travelled with TUI in the reporting period – almost ten times as many as in the same period last year (Q2 2021: 0.2 million)
  • Turnover of 2.13 billion euros in Q2 2022 – nine times higher than in the same period last year (Q2 2021: 248 million euros)
  • Q2 Underlying EBIT loss of 330 million euros, almost halving the prior Q2 of 633 million euros
  • TUI Hotels & Resorts delivered a third successive quarter of positive earnings since the start of the pandemic
  • TUI CEO Fritz Joussen: “The high demand for travel and the very good business performance confirms our forecasts. 2022 will be a good financial year. Capacity almost reaches the pre-Corona level of 2019. After two years of crisis, we expect TUI to become profitable again in the current financial year with a significantly positive underlying EBIT. This is the basis for new growth.”

tui group

STRONG TRAVEL SUMMER 2022 EXPECTED: 85 PER CENT OF SUMMER 2019 BOOKING LEVEL ACHIEVED, NEW BOOKINGS CURRENTLY ABOVE SUMMER 2019 LEVEL – MARKETS UK, GERMANY AND NETHERLANDS SHOW HIGH MOMENTUM

The booking trend remains unabatedly high. In the period under review, 1.9 million guests travelled with TUI – almost ten times as many as in the same period last year (Q2 2021: 0.2 million). For Winter 2021/22 and Summer 2022 combined, TUI currently counts 11 million customers. After the short-term dampener due to the omicron variant, bookings are picking up significantly. In the past six weeks in particular, new bookings were above the comparable level for summer 2019. As in the weeks before, the particular momentum continues above all in TUI Germany and TUI Netherlands. Both markets saw double-digit growth in Summer 2022 bookings in April, above the comparable booking level for Summer 2019. In terms of the overall development of bookings for Summer 2022, TUI UK continues to lead the way, currently showing an increase of 11 per cent compared to Summer 2019.

Group-wide, booked volumes are currently at 84 per cent of summer 2019, the last regular financial year before the Corona pandemic. TUI confirms its expectation to almost reach the booking level of summer 2019 in summer 2022. Two trends are confirmed: Holidaymakers continue to book more at short notice and at the same time spend more money on their trips. Average prices remain high at +13 per cent for Winter 2021/22 and +20 per cent for Summer 2022. The reason for this continues to be the high proportion of package tours booked. Customers trust the TUI brand and hand over the complexity of travel planning with flights, transfers and hotel rooms to TUI tour operators in the markets. At the same time, TUI guests book longer stays on average and they have more budget for additional services, such as a higher hotel or room category.

TUI had announced that it would reduce the Corona aid as quickly as possible and lower the Group’s debt. At the end of the period under review, TUI’s net debt stood at around 3.9 billion euros, compared with around 5.1 billion euros in the previous quarter. The target remains unchanged at a gross leverage ratio of below three. Due to the positive business development, the stabilisation of the market and the ongoing transformation of the company, the basis has been created to gradually return the KfW credit lines and to reduce the German government’s participation.

 

More info: www.tuigroup.com